Ladies and gentlemen, good day and welcome to AvenuesAI Limited Q2 FY 2027 earnings conference call hosted by Go India Advisors. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Rajat Gupta from Go India Advisors. Thank you, and over to you, sir.
Yeah, thank you, Hooda. Good evening, everyone, and welcome to AvenuesAI Limited earnings call to discuss the Q2 FY 2027 results. We have on the call with us today Mr. Vishal Mehta, Chairman and Managing Director, Mr. Vishwas Patel, Managing Director and Chief Executive Officer, Mr. Sunil Bhagat, Chief Financial Officer, and Mr. B. Ravi, who is advising AvenuesAI on corporate and financial strategy as an independent consultant. We must remind you that the discussion on today's call may include certain forward-looking statements and must be therefore viewed in conjunction with the risk that the company faces. I now request Mr. Vishal Mehta to take us through the company's business outlook and financial highlights, subsequent to which we will open the floor for Q&A. Thank you, and over to you, sir.
Thank you, Rajat, and very good afternoon to everyone. Happy Dhanteras. Thank you for joining us in the AvenuesAI second quarter and first half FY 2027 earnings call. I am pleased to share our performance and, more importantly, our perspectives on how the next phase of AvenuesAI's growth is expected to unfold. Let me start with a thought. Over the years, we have built an infrastructure to process payments. Our next opportunity is to create significantly greater value from the millions of digital interactions that happen on a weekly basis that this infrastructure enables. This is the transformation underway at AvenuesAI. We are evolving from a payments technology company into an AI-first fintech infrastructure company, which combines payments, enterprise digital platforms, and transaction intelligence. Our first half results provide a very strong foundation for this journey.
I will now invite Vishwas Patel, our Managing Director and CEO, to take us through the business performance and key developments, followed by Sunil Bhagat, our CFO, who will present the financial highlights. Vishwas, over to you.
Thank you, Vishal. For the first half of FY 2027, our consolidated revenue from operations increased 71% year-on-year to INR 5,560 crore. Our operating EBITDA, excluding other income, increased 19% to INR 199 crore. Our consolidated profit after tax grew 24% to INR 156 crore. In the second quarter, our revenue grew 47% year-on-year to INR 2,879 crore, while profit after tax increased 6% to INR 72 crore. These results demonstrate the growing scale of our business and our ability to generate profits while continuing to invest in our future. I want to emphasize something important. Our ambition is not simply to process more transactions. It is to generate greater value from every merchant relationship, every enterprise relationship, and every technology capability that we have built. That is where we see the next phase of opportunity. Let me turn on to our payments business.
During the second quarter, our total payments processing volume increased 19% sequentially to INR 1.77 lakh crore. This is an important development demonstrating continued growth in transactions throughput across our payment infrastructure. Our net take rate during the quarter was 5.06 basis points, reflecting a competitive pricing strategy. We recognize that investors closely monitor take rates and margins. Our approach is deliberate. We are prioritizing transaction scale, merchant relationships, and long-term competitiveness while continuing to evaluate the economics of the business. An equally important part of our merchant strategy is settlement efficiency. We have been focusing on accelerating settlement cycles so that the merchants can receive their funds faster. This strengthens the merchant experience and can improve their working capital efficiency. Faster settlements can also create timing-related working capital requirements for our business.
We believe that a combination of competitive pricing, reliable infrastructure, and efficient settlements can help us build stronger and more enduring relationships. Scale alone is not sufficient. The opportunity ahead is to use our established merchant relationships to introduce additional services and improve the value we generate from our infrastructure. Today, we primarily monetize the processing of payments. Tomorrow, we want to build additional revenue opportunities around the enterprise technology, merchant intelligence, digital services, AI-enabled financial workflows. We believe the payments business is not the end of the opportunity. It is a foundation on which we can build several additional businesses. Let us now discuss Rediff, which is one of our most important strategic priorities. We believe Rediff has the potential to become much more than a traditional internet and communications business.
Our vision is to develop a connected digital ecosystem, bringing together enterprise communications, commerce, payments, and other technology services. RediffOne provides an opportunity to deepen our relationship with enterprises through digital communications and commerce solutions, while RediffPay is intended to expand our participation in consumer payments and create additional digital engagement opportunities. CCAvenue, in turn, provides established payment infrastructure that can support this broader ecosystem. The strategic advantage is that there are complementary capabilities. An enterprise using communication services may also require commerce and payment solutions. A merchant using payment infrastructure may also require business software, customer engagement tools, and intelligence services. By bringing these capabilities together, we believe we can create opportunities to serve the customers across a broader range of requirements. This is how we intend to unlock value from Rediff. Our immediate focus is on commercial execution, integration, and building sustainable revenue streams.
We are not assuming that value creation will happen automatically. It will require disciplined execution and measurable progress. But the opportunity is compelling. Rediff gave us a platform to participate in a much broader digital economy than payments alone. Our second strategic growth priority is our international expansion. Over the years, CCAvenue has developed payment technology and operating capabilities that we believe can support growth beyond our domestic market. We already have an international presence across the UAE, Saudi Arabia, and Oman. Our next objective is to evaluate opportunities to expand our payment infrastructure into additional markets, with the U.S. remaining an important priority. International expansion provides the potential to diversify our revenues, deepen relationships with global merchants, and develop additional payment processing opportunities. Of course, each market has its own regulatory requirements, competitive dynamics, and commercial considerations.
We intend to pursue opportunities selectively with a clear focus on disciplined investment, measurable returns. Our ambition is to build CCAvenue into a more significant international payments infrastructure franchise over time. We have developed the technology and experience in payments. Our opportunity now is to extend these capabilities into markets where they can create commercial value. Let me now turn to what could become one of the most differentiated aspects of AvenuesAI's future, that is artificial intelligence. We believe the convergence of payments infrastructure, enterprise technology, and AI creates an important opportunity for our company. Every day, digital commerce generates information about transaction patterns, merchant activity, and financial behavior. With appropriate permissions, governance, and regulatory safeguards, such information can help businesses and financial institutions make better decisions. This is the opportunity we are pursuing through TISco, our transaction intelligence initiative.
Our objective is to develop AI-enabled capabilities for applications such as merchant intelligence, risk management, fraud prevention, and financial services workflows. Let me explain why this matters. Traditionally, payment infrastructure companies generate revenue by enabling transactions. Transaction intelligence introduces the possibility of generating additional value by helping customers understand and act on permitted transaction-related information. For example, financial institutions need better tools to assess market activity and risk. Businesses need better intelligence to understand operations and transaction behavior. And the broader financial ecosystem increasingly requires technology that can improve efficiency and decision-making. We believe AvenuesAI is well-positioned to explore these opportunities because of its existing technology infrastructure and experience serving merchants and financial institutions over the last two decades. TISco is still being conceptualized, developed, and we will approach commercialization responsibly. But our longer-term ambition is clear.
We want AvenuesAI to evolve from a company that processes transactions into one that also helps businesses and financial institutions make better decisions. That is the opportunity we see in applied artificial intelligence. We recognize that our growth strategy must ultimately translate into substantial earnings and cash generation. Our first half operating cash flow was - INR 192 crore . This reflects significant working capital movements, while management attributes primarily to faster settlements with merchants. Accelerating settlements is part of our effort to improve merchant experience, support merchant liquidity, and strengthen our competitive position. At the same time, we remain focused on optimizing working capital, maintaining adequate liquidity, and improving cash conversion as the business scales. We continue evaluating our investments and initiatives against their commercial potential, capital requirements, and expected returns. Our objective is not growth at any cost.
Our objective is to build a larger, more diversified, and sustainably profitable technology business. Looking ahead, we have previously communicated FY 2027 consolidated revenue guidance of INR 11,000 crore-INR 13,000 crore. We have delivered revenue of INR 5,560 crore in the first half. Our focus on the remainder of the year is to continue to expand transaction scale, strengthening merchant experience, advancing Rediff's integration and commercialization, developing TISco, and pursue selective international opportunities. I want to conclude with three thoughts. First, we have scale. CCAvenue is an established payment infrastructure business with substantial transaction throughput and long-standing merchant relationships. Second, we have multiple growth opportunities. Rediff, International Payments, and AI-led transaction intelligence provide potential new avenues for revenues and value creation. Third, we have a very clear strategic direction. We are building towards a more integrated fintech infrastructure model where payments, enterprise technology, and intelligence can reinforce among another.
The opportunity is not simply to grow our existing business. It is to expand the role AvenuesAI plays in the digital and financial ecosystem. We recognize that investors will judge us by execution, profitability, cash generation, and the commercial progress of our initiatives. This is exactly where our focus will remain. We believe the infrastructure we have built over the years provide a strong foundation. The next phase is about converting the foundation into broader commercial opportunities and enduring shareholder value. We are excited about the journey ahead. Thank you for your continued trust and support. I will now invite our CFO, Mr. Sunil Bhagat, to take you through the financial performance in greater detail. Thank you.
Thank you, Vishwas sir. Good afternoon, everyone. Let me take you through the key financial highlights for quarter two and half year FY 2027. For the second quarter, our consolidated revenue from operations stood at INR 2,879 crore. That is an increase of 47% compared with INR 1,965 crore in the corresponding quarter last year. Our operating EBITDA, excluding other income, stood at INR 98.9 crore compared with INR 96.2 crore a year earlier. Our consolidated profit after tax for the quarter was INR 71.70 crore compared with INR 67.6 crore in quarter two FY 2026. For the first half, revenue from operations increased 71% to INR 5,560 crore. Our operating EBITDA, excluding other income, increased 19% to INR 199 crore, while consolidated profit after tax increased 24% to INR 156 crore. In our payments business, quarter two TPV increased 19% sequentially to INR 1.77 lakh crore, with a net take rate of 5.06 basis points.
Our consolidated balance sheet reported total equity of INR 5,145 crore as of September 30, 2026, while cash and cash equivalents stood at INR 546.5 crore. Our first half operating cash flow was negative INR 192 crore, reflecting significant working capital movements. Management attributes this primarily to our initiative to accelerate merchant settlements. Faster settlements help merchants access their funds sooner, improve their liquidity, and enhance their performance on our platform. While this can result in timing-related working capital outflows, we view settlement efficiency as an important competitive differentiator. We continue to focus on balancing faster merchant settlements with prudent liquidity management and efficient cash conversion. We remain focused on transaction growth, operating efficiency, disciplined investment, and sustainable profitability. With that, we can open the floor for questions.
Thank you.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Pramukh from MyInvestBuddy. Please proceed.
Hi. Why has the growth reduced, like this thing, this quarter? Is it because of the seasonality?
The question is around revenues this quarter, the-
And the profit growth.
Profit growth, yeah. What we have done is we have prioritized growth as an objective. Growth gives us a lot more data in the world of AI, but we think data is the moat. In other words, in the medium and long term, we should try to get transaction and volumes going. For that, if you look at our net take rate, that is reduced sequentially quarter-over-quarter by about 4%. So it is at 5.06 basis points. Yes, we wanted to capture volumes for the upcoming festival, plus we have decided that we should continue focusing on scale. So it is a conscious decision, and that scale will potentially open up more opportunities to give services to our merchants and customers.
Got it. I have two more questions.
Yeah.
Yeah. One is regarding the profit guidance for the entire year, and second is regarding Rediff IPO. When can we expect it to come to fruit?
We have given EPS guidance, you are right. The EPS guidance that we had given was around close to INR 8.75-INR 9.5 per share. If you look at slide number 11 of our presentation, earnings per share, we have given a guidance of INR 8.75-INR 9.5. If you look at our numbers as of now, for the first half of the year, we have reached about INR 4.5 per share. We think that we are staying by our guidance range as far as earnings per share is concerned. I mean, as far as the Rediff IPO is concerned, it is of course a board decision of Rediff board. What is out there in the open is that there has been a confidential filing which has been approved. We believe that as and when we get to know more information, then we will immediately let shareholders know.
Got it. Just one more question. Is there any promoter selling which is going to happen in the future, or there is no more of that?
No, there is no promoter selling. In other words, in AvenuesAI, we have promoters been continuously at the same level.
Got it. Yeah.
in primary, we've invested. Promoters have invested in primary, doing the rights offer.
Got it. Congratulations on a good set of numbers and-
Thank you.
Thank you. The next question is from the line of Saurabh Bansal from SB Capital. Please proceed.
Yeah. Hi, everyone. My first question is regarding Rediff Fund business. What are the revenues, EBITDA, and cash fund contribution so far, and what are the timelines we are looking forward to monetize it?
Rediff Fund is part of Rediff ecosystem. If you look at annualized revenues in Rediff on a run rate basis, it is upwards of INR 200 crore. It is much more than INR 200 crore, but that much I can tell you. In terms of profitability, Rediff will generate about INR 100 crore worth of profit a year. These are the ballpark numbers that I have shared with you. In terms of the synergies to play out, which is what we discussed in terms of how these synergies, we are working on that. It may take a few quarters to actually start playing out in synergies, or maybe sooner. I think, of course, it would be difficult to make any forward-looking statements on that. But Rediff is profitable, and Rediff Fund is the largest driver of that profitability.
Okay, got it. One is regarding the RediffPay launch UPI system. Is it subject to NPCI market share cap or TPAP consent?
Vishwas is there, so he will share more, but what I can tell you is that we got the permission from NPCI. We were in CUG. We got onboarding permissions pending all the security and compliances as of last month, middle of last month. I think, now, of course, given the festival season, so on and so forth, UPI transactions are on the upswing. You will hear more from us in terms of the progress.
Okay. I have two more questions regarding the CommerceAI CCAvenue also. What are the pricing model and revenue prediction for the next two financial years, like FY 2027 and 2028?
CCAvenue transaction, I mean, of course, there are two things. One is there is a UPI mandate which is out there, which is still not implemented yet. If you think about all the other payment types and so on and so forth, we have been very competitive. It varies by customer scale, the kind of business that they are in, so on and so forth. Payments as a business is a fairly competitive business. The net take rate, if you look into it, will give you some indications in terms of, in order to scale that, what is the impact to the take rates.
That too is a very conscious decision on the part of the company saying, "We want to make it profitable, but eventually, not today, tomorrow, day after tomorrow, data will be the moat." If you have more transactions, more intelligence in the system, that is when we can actually be able to monetize in the future. That is one. I think, what was the second question? I am sorry.
What are the revenue expectations for the next two financial years?
Yeah. We've given you revenue projections for this year. We typically end up giving projections for the first quarter in the financial year, in terms of guidance. If you look at slide number 11, you will pretty much have an indication in terms of our FY 2027 guidance that we've given. I think we have a lot going on as far as AI is concerned. I think the playbook is out there for a lot to digest. But we think that we'll continue investing in that opportunity to build up our own differentiation. We think data is the most important differentiator, if we had to think about it, given the N number of frontier models and other models which are out there. But in terms of the ecosystem that we breed, we think that that becomes a differentiator.
Okay. I have just last question. How are you going to measure the AI-driven margin expansion given that the net revenue per TPV is currently falling right now?
It helps us build AI's actually got two things. One is, it gives us productivity benefits. That's one. But second is that a lot of that benefits are being passed on to consumers and merchants at the moment. What we are doing is we want scale, we want magnitude. It allows us to do a lot more, given the opportunity that we sit on top of. Having said that, I think, we are also learning a lot in terms of what it means to our ecosystem. A lot of things like context engineering, how do we actually work at the specification level of building software, not just prompting it. Things like, how do we build out the kind of moat and scale that we think are important. There's some experimentations also that we need to do to be able to see how that works.
How do we reimagine the ecosystem and many pieces of our framework, which are somewhat more AI first? While a lot of work is being done at the backend, which is not visible, because in this world, we need to change a lot, compared to what we were before and how we need to look. There's significant work going on at the backend, which is not visible. But yeah, a lot of cost is somewhat front-loaded in this business. But, we look at it in two ways, monetization and survival. Both are equally important. We think that, not us, practically most of the businesses need to think about it this way. We think that, let's keep on building out a robust framework, and then we also see a lot of green shoots in terms of how we could monetize.
The TISco score that we talk about, which is the transaction intelligence score, it is not easy to build such things. We think the probability is against us to make it successful, or for it to become successful. But if we are able to make it successful, the returns are at least a few thousand X. I think those are the bold bets that we need to take up. They are calculated bets. They are one worth making, because it changes the ecosystem. But like I said, the odds are always against us to take on such probability. I think with more and more data, the probability increases. The probability of success increases, let me put it this way. If the probability of success increases, the returns are a factor of a magnitude more.
Those are some bold bets that we have taken, but they are calculated, and we will be monitoring and tracking them.
Okay, then thank you so much. That is it from my end, and all the best for the future growth. Thank you.
Thank you. The next question is from the line of Rahul from Dolat Capital. Please proceed.
Hello. Thanks for the opportunity. Wanted to understand how the landscape changes for us in terms of competition, given that there is an MDR opportunity on the UPI side. Are we shifting any gears in terms of merchant acquisition side? Also on the payment gateway side, how the opportunity is shaping up, given the current landscape that you see?
Rahul, Vishwas here. UPI MDR is a good monetization strategy that will be helpful to not only you, but the entire ecosystem. Today, almost 38%-40% now of our transactions that we are processing for free for UPI. Almost 30% of those UPI will become chargeable under the MDR regime. We are looking forward once it gets implemented. It will add a good revenue boost to the existing ecosystem. Overall also, UPI continues to grow on the debit mechanism because all kind of line. It's a good monetization that happens, probably maybe implemented, we do not know, maybe January or earlier. We will wait for indications from NPCI.
Overall, business continues to grow because if you see on the offline scape today, Brazil and China, they have their POS infrastructure reached to almost 90% of their population, of the merchant population, while we in India are still at 30%. There's a lot of potential going forward in increasing the scape. As you know, payments is like any product or service is sold, then payments has to come in. In any businesses, in any line, even a tuition teacher getting payment from his students, that is an opportunity for us to get in. That scope is vast. It will keep growing, and we are very confident of the landscape even growing faster.
Sure. Vishwas, if you could attribute some of the innovative product that we launched during this Global Fintech Fest, I think we did lot of partnerships. How are some of these partnership taking shape, and which of these could become a meaningful contributor to our net take rate basis?
Everything helps in getting newer merchants as well as deepening the relationship with our existing merchants. Say we went live with Apple Pay and we launched it with the Oberoi Hotels Group, right? That itself where all Indian and international customers can quickly pay through Apple Pay and other, increases our efficiencies. Like Indian customers, if Apple Pay is there, which is more easier way than UPI, right? Then people shift that, and traditionally earnings has always been better on credit cards, right? Those things will definitely help. There were a lot of launches on AI Forms, which through us, through a few commands, you can create a dynamic form instantly, and you can use it to collect fees or your club or this thing, or any alumni meet or a pilots association want to collect.
Just a few rules, create a form or get them with a pre-integrated CCAvenue payment gateway is created within seconds now. That itself opens up a lot of new businesses with lot of in-stream WhatsApp, in-stream payments that we launched, no redirect side of the WhatsApp ecosystem. Someone send a payments and a link within WhatsApp, the entire payment journey is concluded within WhatsApp. That is because of a deep partnership with Meta on the WhatsApp platform, where CCAvenue now is available. That also opens up for a lot of negotiated sales in the business ecosystem where transactions which is collected in an instant within a WhatsApp chat. Similarly, we launched WhatsApp Rocket, a faster checkout, where we now have access to the name and the billing name and address preloaded when a customer comes in and puts in a mobile number.
Automatically all his delivery addresses and everything is preloaded so that the transactions are finished off in just two or three clicks. A lot of partnerships helps in boosting existing business, getting new businesses, and newer business models evolve based on the functionality that is evolved. We launched CommerceAI, which is 2.0, which is built on Google's A2A platform. Payments can be done without even a manual intervention, end-to-end. That is for AI agents to conduct, complete it. Those platforms are also ready. We also did tap-to-own device, where if you're going on an app, say you are on a Swiggy, so at the end you always get a credit card, debit card, net banking as a payment option. Why not tap your own card to your own phone and complete the payment?
You don't have to insert any card number or save any card number with anybody else. You just, at the checkout, take out a card and just tap it at the back of your own phone and the transaction is complete. Tap-to-own device, right? Those are world first, that's one of the things that we have launched after RBI gave a permission during, before GFF, the Global Fintech Fest. Many products we launch which are quite path-breaking, and these all solutions help increase business. That's where the innovation and the scale that I was just talking of earlier, right? Then when more transactions comes in, the TISco engine, the transaction intelligence initiative that we are portraying with AI capabilities will help with more data to complete more transactions and scale further.
Rahul, to just add to what Vishwas said, I think we look at it as incremental TPV. I think we should be able to get to at least INR 50,000 crore-INR 1 lakh crore of incremental TPV in the next 24 months by all the partnerships, and that's our internal estimate. Of course, the upside indeed in earnings comes because of transaction conversions, in all the distribution-led growth with what Vishwas described on Shiprocket and all of that, and some higher margin incomes that come because of all the forms and reconciliations and integrations and tools. That's what we'll track and demonstrate going forward.
Yeah, that sounds pretty interesting, both Vishwas and Vishal. Just last bit, if I may. We also used to have this solution for hospitality where we were doing the reservation system. Are some of this consumer partnership and our ability to provide integration with the reservation system, are some of these things can become a very integrated play for player like us who are into the SaaS application as well as consumer innovation side?
Rahul, you are right on that. Our ResAvenue solution, [audio distortion], is working today across more than 3,000 plus hotels. It's just not a payment gateway with some services. This is a full end-to-end vertical-specific hospitality solutions with deep integrations. We are one of the only Oracle MICROS Fidelio property management system certified, where a reservation comes, and it's then further distributed through our channel manager, which is connected to almost 150 OTA websites, including Booking.com, Hotels.com, Expedia, MakeMyTrip, Ctrip. All those ecosystem where hoteliers can connect, their inventory is visible across all these ecosystems. We said that we did almost 1.2 million room nights in the last 90 days through our channel manager system. Payments becomes the last integrated part, right? When the reservation comes and someone pays through a payment link, let's say, [inaudible] .
in the night here in India, through the connect on the PMS, it gets automated, updated without any physical manual intervention, this money has come and someone has to update it. It's entire automated system. Hospitality, we are very gung-ho because it's a very dynamic, aggressive market because inventory is perishable. They have to put the bugs on the beds, fill up the occupancy, plus the margins are good. Today also, they have a mindset of paying 10%-15% commissions to agents to get the room bookings. That way, it is much more open and for better sales on by giving this value-added services. Yes, ResAvenue also is scaling up.
To add to what Vishwas said, I think rather, the way we look into this is also in the world of AI, it is a distribution layer. In the future, we think that there is an AI assistant which will actually access the distribution layer for hotel inventory booking confirmations, where CCAvenue becomes a payment infra. We think that, today maybe people go directly to a Booking.com or a MakeMyTrip or whatever. Tomorrow, we think that the biggest opportunity is this AI agents booking directly with hotels. We think that that is perhaps where it needs to go. If we are able to build out, in some ways, for the hotels, what price to charge, what customers to target, how to maximize their occupancy, which channels to prioritize, how to increase their profitability.
Those are all the services that you need to layer in, which becomes an opportunity for ResAvenue. I think it is just much more than what it is today, which becomes an opportunity for us going forward.
Great. Thanks for the color. That is it from my side.
Thank you. The next question is from the line of [inaudible] . Please proceed.
Hello, are you able to hear me, ma'am?
Sir, can you please speak little loudly?
I am [inaudible] . I am sure you are able to hear me. I have a couple of questions here. Firstly, on the INR 700 crore right issue, major part was deployed on Quantum Edge AI sovereign data centers. Can you just highlight on what kind of investment it was? You can just highlight on the status of the investments. Also, in line with the same question, Quantum AI monetization has also happened. Can you just highlight on the status of this also?
The issue proceeds and the use is part of our publication. If you look into this, you are right. What we had done was we have said that about 294 odd crore were in investments that essentially enabled us to build out advanced technology solutions in AI software. We have not deployed that capital yet as much. We have lot of things changing. In fact, every day there are two or three breakthroughs. I mean, the pace at which it is moving is very quick. We ourselves are, rather than being a spectator, we are involved in terms of figuring out what to do and how to build up. We are assessing how we need to think through the deployment of that capital. But if you look into the deployment of that capital as parts of rights, we have not deployed that capital as much.
What we need to think about is that going forward, what are some of the things that we spend on, like pretty much the agent frameworks, the TISco solutions. In current quarter, we will see a lot of that going forward. We will keep you updated.
Okay. Thank you, sir. Next one is regarding our international businesses and geopolitical risks. We have recently got licenses from Saudi and RPA also. What kind of margins are we seeing going ahead in this, internationally and domestically, what kind of the arbitrage we are seeing both the way? Can you just highlight on it?
See, international margins are much better than India. We think that given the macroeconomics that you highlighted, of course, we do not see as much of a dip. We definitely would have grown more, and we definitely see a slowdown, but we think that the margins are still very robust there. Primarily because those geographies, they have a lot more card solutions, a lot more travel, entertainment, certain categories that are very valuable. For that ecosystem, there are more travelers than incumbents. I think, of course, there is geopolitical instability, and that geopolitical instability will cause those disruptions. To us, they have been slightly minor compared to the greater ecosystem. We think that is when we said that we also need to prioritize growing up in the U.S. Middle East is good for us. The next important geography that we would like to target is the United States.
But we do not see too much of an impact yet.
Okay, sir. The next one is in line with embedded credit alliances and the future outlook. OPL and Ratnaafin organizations, what is the actual loan origination volume processed via CCAvenue and Online PSB Loans and Ratnaafin during the quarter two FY 2027? What is the net margin on your transaction? Did AvenuesAI recognize from these credit lines in rupees and percentage?
See, OPL and Ratnaafin are investments. We don't record any of those transactions and values as part of our P&L and balance sheet. They stay as investments. We do have an aspiration to open up our merchant ecosystem to such companies where we are strategically invested in. That becomes an opportunity for us to monetize. The TISco Score that we are working towards conceptualizing and developing will also be valuable, where such investments add tremendous value in terms of the build-out. The loan origination does not start with CCAvenue. We do have EMIs and others that are offered to consumers, but we don't segment them and provide that detail.
Yes, sir. Sir, on this line, regarding the same question, how much have we earned in this quarter regarding our investments in Ratnaafin organization and OPL? How much margin also have we extracted, and what kind of cash flows have we seen from these kind of transactions?
No, we don't see cash flows from such transactions. We have made investments. These are investments that have been made. Cash flows will come when we actually open up our ecosystem in the medium to long term. Currently, these are strategic investments. They sit in our books as investments, both Online PSB Loans as well as. These are long-term investments. They are not short-term investments. These are strategic investments that we've made. OPL is, of course, the backbone for many of the PSU banks that utilize the framework for loan origination processing. Similarly, NBFCs like Ratnaafin are the ones where they provide such loans to merchants, and they will work with us within our own ecosystem as well as for us to build out such intelligence scoring frameworks. These are long-term strategic investments. They don't contribute to cash flow into the company.
Okay, sir. Sir, for FY 2027 guidance, does the quarter two profit before tax compression alter your full year 2027 consolidated PAT expectation which we had given? Do you maintain the-
We had given-
Yes, sir.
We had given EPS guidance. If you look at slide 11-
Yeah
We've given EPS guidance of INR 8.75-INR 9.5. I think if you look at the first half, we are at almost INR 4.5 a share. We don't want to alter the guidance. We're staying with the guidance that we've given.
Okay, sir.
Yeah.
One more question on the same line. Are net margins stabilizing, sir? Our net margins are quite falling. Are we seeing it to stabilize or clear or something that's what providing a guidance or you can highlight on this? What kind of status do we have on our net margin?
Yeah, I mean, the take rates have, of course, sequentially been slightly under pressure. You will look at the take rates have sequentially reduced by 4% quarter-over-quarter. And that reflects in the margins. I think, with the scale we are there'll be some things that help us increase the margins, like take rate on UPI and others that potentially come up. But we are forward investing. We think that there are a few things that will help us in terms of improvement. And second is the kind of services we put on top of our existing transactions, and our ecosystem will help us in terms of margin expansion. So, I think you're right, there's going to be some compression, and then we'll work on those expansion opportunities because at scale, when you work on those and if it works, then they become large by themselves.
Okay. Sir, one last, probably last or the second last question. If MDR comes into the picture, what kind of impact are we seeing in the remaining period of this FY 2027, sir?
Vishwas Patel will tell more, but one thing we know is that up to 40 basis points was the earlier conversation. Whatever comes in, and it's again a competitive world, which means that there are many providers, and depending upon who wants to subvent what, so there is no ceiling or a floor by the regulator. What that means is that there is going to be, of course, but we think that whatever it is will always be a positive. So it'll help increase the margins.
Okay. All, there is not much change, and the implementation process is yet to be done. We'll do it closer to when we have to change, but the actual revenue accretion once the MDR on UPI is in effect, we'll most probably let you know by next quarter how much has that incrementally increased the volume revenue on our system.
Okay. Sir, is there any expansion and new avenues are we looking forward to, which we are expecting it to come in the near term?
I think we've already set out what we are aiming for in my speech earlier, where we clearly said that we are looking at more increase of business here through multiple avenues that we already have in place, additional new services and other things, and we are looking at international expansion. UAE is delivering very well. Saudi is growing. Oman also, the top four or five banks are using our entire systems. Looking at the United States in the next quarter. That also is a very interesting market. We're looking because of our excellent technology and features. I think it's a very good market to tap. Of course, the world's biggest economy and market. Even a small good push can really scale things here.
Okay. Sir, is there any news or any margin expansion in the data center setups?
We're appropriately conservative. We'd, of course, invest in certain processing that you would expect if we wanted to actually scale up our AI opportunities. But we are tracking what is going on in the ecosystem. And we are appropriately conservative given that there's a lot of changes happening on a daily basis, forget the weekly basis. We need to actually get a tunnel vision and then go make those specific calls. But you can expect that to happen in the current quarter and the next quarter.
Okay, sir. And last question. Regarding Rediff, the IPO, can you just Because we are not clear on the timelines of the IPO, so is there any expectation in the near term or the, because you've already filed the draft IPO prospectus. Long back, you filed the Rediff IPO prospectus. What kind of timelines are we looking at, sir, for the IPO launch, and what valuations are we seeing on the front end?
See, whatever is there in the public is what we can discuss. Rediff had filed a confidential DRHP, and subsequent to that, there were observations that were provided. Final timeline of the IPO and filing would be a board decision of Rediff, based on the markets and the market timings, and the valuations will be determined by the bankers as and when that would happen. But that's all I can share. What we can tell you is that as soon as we have more information, we'll be able to share that with the shareholders.
Okay, sir. So, what kind of You're not able to Okay. Sir, one last question again. So what in this quarter, or you can take this for a year also, what were the good points or what were the expectations which we have met, which we had earlier, and what are the expectations we were not able to meet? So if you could just highlight on the status of our expectations from the financial year and the quarter as well.
Sure. I think we had given indications on the beginning of the quarter in terms of how the quarter would look like. So I think if we look at slide 11 again, we then point back to that. I think we are tracking that. So strong payment growth volume, positivity in profits. We fell a little short on the net revenue growth, take rates, the operating earnings momentum. I think that's where those are the, if you ask us, the not met, but the met was strong payment volume and positive profitability. That's the way we see it. If you look at TPVs up, we grew our volumes quite a bit. And despite all the competitive pricing and pressures, we were able to manage profitability. So those are the things. But take rate, of course, is compressed.
I think that demonstrates that we had lower yields and while our pricing is deliberate, but the economic benefits we'll have to demonstrate going forward. The earnings were modest. They're in line with expectations, but there's always this dil mange more. So that's the way we see it.
Okay, sir. Okay. That is all from my side, sir. And congratulations on the result as well. Thank you.
Thank you.
Thank you. The next question is from the line of James from ARK Consulting. Please proceed.
Are you able to hear me?
Yes, sir.
Okay. The first question would be that I observed two years there was no dividend payment. Is there any plan to pay dividend to the investor? The second question would be regarding the Rediff IPO when it comes, part of the business from AvenuesAI will be transferred to Rediff. How it is going to affect the AvenuesAI shareholders? Because the past three decisions were not helpful to the retailers, be it reverse merger or [inaudible] or the rights issue. That's my concern. Thank you.
Yeah, I'll answer the second question on Rediff. Rediff is anyways the business that was transferred last year in FY 2026. Currently, AvenuesAI owns about 82 odd percentage in Rediff, and it gets consolidated as part of our P&L and balance sheet. That transaction is through, which means that whatever quarterly numbers that you're looking at is all consolidated and that thing has been completed. There's no additional impact that you see as a result of this business transfer between AvenuesAI and Rediff. Regarding Rediff as a company, we think it's a strong brand. It resonates a lot with users, and there's a lot more potential to actually build out that brand going forward. I encourage you to try out some of the RediffPay applications.
If you go to the Google Store or the App Store and you're able to download the application, you'd be able to experience it. Regarding your first point on dividends, I mean, we understand that shareholders look forward to that, and we appreciate that expectation also. At this stage, board believes that retained earnings and reinvesting in our growth will create a greater longer-term value for shareholders. At least in the last two years, that's the thought process that we had. With CCAvenue having expanding payment volumes, Rediff entering the next phase of growth, our own investments in the AI international markets, we see opportunities to deploy capital productively. The objective is not just to grow the business. We want to translate that into earnings and returns. Obviously, board will continue reviewing the priorities on dividend policy as the business evolves.
And the key is to balance that growth investments with distributions. I hope that answers your question.
Okay, thank you. All the best to the team for the hard work they are putting in. Thank you.
Thank you. The next question is from the line of Pramukh from MyInvestBuddy. Please go ahead.
Hi. So, in Vavian, we had a AED 29.3 million profit from sale of investment. So can you give more color on this? On 2024-2025.
Yeah, that was nothing else but we had explained that there is an entity that was created. Vavian owned an entity, and there was an entity created in Abu Dhabi, which then owned. So in consolidation, it cancels itself out. So it was a restructuring where you created an entity in Abu Dhabi, which owned the asset that owns CCAvenue.ae. So if you look at the consolidated results, it cancels each other out. It does not reflect in the consolidation.
Got it, sir. Thank you.
Thank you. Ladies and gentlemen, due to time constraints, that was the last question for today. I now hand the conference over to the management for closing comments.
Thank you all for joining our second quarter earnings call, and happy Dhanteras and happy Diwali to all you and your families, and we look forward to keeping in touch.
Thank you very much. On behalf of Go India Advisors, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.